Tesla's recent shift in focus has left many wondering if the electric vehicle pioneer has lost its way. It's a far cry from the days when Tesla dominated the EV market with its innovative and desirable cars.
The company's attention now seems to be on robotaxis, humanoid robots, and artificial intelligence, which, while intriguing for investors, fails to address the needs of drivers seeking the best new cars.
During Tesla's 2026 earnings call, CEO Elon Musk's response to an analyst's question about new cars was telling. He mentioned the Cybercab, a two-person vehicle, as the compact offering, indicating a shift towards autonomous vehicles. Musk's emphasis on the Roadster, a sports car with rocket thrusters, and the unproven Cybercab feels like a desperate attempt to stay relevant in the robotaxi market, especially when compared to established players like Waymo.
Tesla's Chief Financial Officer, Vaibhav Taneja, further solidified this strategy by stating that they now view FSD as the product and the vehicle as merely the delivery mechanism. This sales pitch, however, fails to resonate with drivers who seek more than just a subscription service.
The bigger issue with Tesla's FSD-first approach is the safety concerns surrounding the system. Multiple federal investigations have been launched, and the system's track record of missed deadlines and overstated capabilities is well-documented. Consumer Reports has a comprehensive timeline of Tesla's self-driving aspirations, which, to this day, remain unfulfilled.
Tesla's commercially available FSD system, first sold in 2016, is not fully self-driving. It requires human supervision and holds the driver responsible for any mistakes or crashes. It's essentially advanced cruise control, a far cry from the autonomous driving experience Tesla promised.
If Tesla were truly committed to being a car company, they would have focused on revitalizing their product portfolio. Instead, they've hyped the delayed Roadster and relied heavily on FSD promises. What about a next-generation compact SUV or a family-friendly hatchback? Tesla had the opportunity to showcase its innovation against the rising tide of impressive new EVs from competitors, but they chose not to.
The company's lack of interest in traditional car models is evident in their product strategy, which can be summed up as a shrug. The biggest news for Canadians, a cheaper Model 3, wasn't even discussed during the earnings call. Tesla's offshoring of production and price reduction strategies are a sign of their struggle to stay competitive.
The Cybertruck, Tesla's last all-new model, has been an embarrassment since its launch due to its flawed "armored glass" demonstration. Despite Musk's expectations of selling 250,000 units per year, Tesla sold only 20,237 Cybertrucks in the US last year, and there are even reports of wheel issues.
It's clear that Tesla's heart isn't in car-making anymore. Wooing investors with futuristic ideas is more exciting and potentially more profitable than developing new EVs to compete in a crowded market. Elon Musk seems to have lost interest in the very business that made Tesla a household name.
